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Onity Group has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Onity Group Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Onity Group's interest coverage with the available data.
Onity Group's debt to revenue ratio for the quarter that ended in Jun. 2026 was 7.90.
As of today, Onity Group's Altman Z-Score is 0.92.
Onity Group (LTS:0KAS) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Onity Group has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Onity Group Financial Strength Related Terms
LTS:0KAS vs BETR, GHI, LDI: Financial Strength Comparison
For the Mortgage Finance subindustry, Onity Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Onity Group Financial Strength vs Banks Industry
For the Banks industry and Financial Services sector, Onity Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where Onity Group's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Onity Group has a Z-score of 0.92, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.92 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Onity Group (LTS:0KAS) has a Financial Strength of 2 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Onity Group and its competitors. This is near median its historical median of 2.00. Over the past decade, Onity Group's Financial Strength has ranged from 1.00 to 4.00.
Is Onity Group's Financial Strength too high?
Onity Group's current Financial Strength of 2 is near median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 4.00. Overall, Onity Group has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Onity Group's Financial Strength compare to BETR and GHI?
Onity Group's Financial Strength of 2 can be compared against companies in the Banks industry. Historically, Onity Group's own Financial Strength has ranged from 1.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Banks company?
A good Financial Strength depends on the Banks industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Onity Group and its competitors. Onity Group's current Financial Strength is 2, which is near median its own 10-year median of 2.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Onity Group stock overvalued right now?
Based on GuruFocus' analysis, Onity Group (LTS:0KAS) is currently considered Fairly Valued. The stock's GF Value™ is $34.73, compared to a current price of $36.24 — trading 4.3% above its estimated fair value. The current Financial Strength is 2, which is near median its 10-year median of 2.00. Onity Group's overall GF Score™ is 66/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Onity Group (LTS:0KAS), the current Financial Strength is 2 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Onity Group (LTS:0KAS) Overvalued in 2026?
Based on GuruFocus' analysis, Onity Group stock appears to be overvalued.
The current stock price of $36.24 is trading 4.3% above its estimated GF Value™ of $34.73.
GuruFocus considers Onity Group to be Fairly Valued.
Key valuation signals for LTS:0KAS:
Financial Strength: 2 (near median its 10-year median of 2.00)
GF Value™: $34.73 vs. price of $36.24 (4.3% above fair value)
No single metric tells the full story. See the LTS:0KAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Onity Group Inc is a non-bank mortgage servicer and originator providing solutions through its brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the servicers in the country that focused on delivering a variety of servicing and lending programs and Liberty is one of the nation's reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs.
66GF Score
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